Bybit reportedly disclosed details of a settlement agreement with the Ontario Securities Commission (OSC) one day following OSC’s roll-out of a Statement of Allegations against the crypto asset trading platform.

Specifically, the agreement reportedly comes with numerous methods to be applied by Bybit during its engagement in registration discussions with the regulating bodies in Canada. 

The announcement reportedly surfaced following the OSC’s release of financial penalties against Bybit and KuCoin, associated with charges of violating securities legislation and functioning unregistered crypto-asset trading platforms.

Per the Settlement Agreement, Bybit has unwillingly released revenues reaching nearly $2.47 million and compensated the OSC $7,707 (CA $10,000) for costs. No extra monetary penalties were levied on Bybit as included in the scope of the agreement.

Additionally, Bybit reportedly issued an announcement revealing its intention of not accepting new accounts from Ontario residents, offering any new merchandise to current accounts held by Ontario investors, or carrying out marketing and promotional efforts targeted at Ontario residents.

Talks related to the registration with the provincial regulator are being carried out at the moment, and should the process fails, Bybit will shut down all operations in Ontario. 

Investors already with cryptocurrencies in their portfolio on Bybit will be mandated to eliminate their positions in restricted solutions, nominally leveraged contracts, margin trading, or credit extensions. 

The exchange noted that retail investor funds or assets in Ontario that are unspent or unutilized may be used for unrestricted products or withdrawn from the Bybit platform.

“We appreciate the OSC’s efforts in protecting Ontario investors and look forward to cooperating with the OSC in all respects in the registration process.”